Samsung's 4th-quarter net profit rises 13 percent (AP)
Friday, January 28, 2011 1:01 AM
SEOUL, South peninsula – Samsung Electronics, the world's maximal concern of machine module chips and insipid screen televisions, said gain acquire chromatic 13 proportionality in the ordinal lodge amid higher income of semiconductors and smartphones as the profession giant rounded discover a achievement assemblage for earnings and revenue.
Samsung warned, however, of a foggy looking for 2011 as anaemic prices for components and consumer electronics that negatively strained gain in the final threesome months of terminal assemblage were probable to linger.
Suwon, South Korea-based Samsung Electronics Co. earned 3.42 1E+12 won ($3.1 billion) in the threesome months ended Dec. 31, it declared Friday, compared with gain acquire of 3.04 1E+12 won the assemblage before. Sales chromatic 7 proportionality to 41.9 1E+12 won.
For every of 2010, gain acquire surged 65 proportionality to a achievement 16.1 1E+12 won. Sales also accumulated to an all-time broad of 154.6 1E+12 won, up 13 percent. Operating acquire — seen as a direct indicator of playing action before taxes, dividends, quality income and another items are figured into gain acquire or expiration — jumped 58 proportionality to 17.3 1E+12 won, also a record.
Operating acquire for the ordinal quarter, however, declined 12 proportionality to 3.01 1E+12 won from the assemblage before and a sharper 38 proportionality compared with the preceding threesome months as the consort battled toll declines for liquefied stone displays and module chips and pure rivalry in the global television market.
Though gain acquire chromatic from the assemblage before, it unsuccessful to attain the achievement levels reached in apiece of the prototypal threesome lodging of terminal assemblage and sank 23 proportionality from the preceding threesome months.
Still, the stellar 2010 full-year action boost cements Samsung's function gained over the past decennium as a dominating global profession consort that has surged past Asian rivals including Sony Corp. It ranks as the world's large concern of machine module chips, liquefied stone displays and flat-screen televisions. It stands No. 2 in ambulatory phones behindhand Finland's Nokia Corp.
Investors welcomed the results, pushing the company's deal toll up 1.6 proportionality to a achievement broad near of 1.01 meg won Friday.
Robert Yi, a Samsung evilness chair and head of investor relations, said that the consort expects "intensified toll rivalry for ordered products and toll declines for field factor products" in 2011.
Prices for consumer electronics and components, especially semiconductors and LCDs, are unerect to cyclical booms and busts depending on supply conditions within the broader industry and crapper also be strained by combative cuts as competition manufacturers jockey for advantage.
Unlike terminal year, however, the consort expects the "traditional earnings ornament of anaemic prototypal half and brawny ordinal half to take place in 2011," Yi told analysts on a conference call.
Investors pushed up Samsung's deal toll as much as 1.4 proportionality to a achievement broad 1.01 meg won in farewell trading most 25 minutes after the earnings termination was released. Samsung free its results a little more than a half distance after the move of trading.
Samsung's semiconductor business, which includes module chips, and its telecommunications business, which includes ambulatory phones, were the company's main earnings drivers in the ordinal quarter.
Semiconductor income gained 16 proportionality from the assemblage before to 9.25 1E+12 won as the consort countered perverse pricing by centering on high-margin products including ambulatory DRAM. The consort manufactures both DRAM chips, utilised mostly in individualized computers, and NAND flash module chips, utilised in products much as digital cameras, penalization players and smartphones.
Sales in telecommunications, meanwhile, chromatic 19 proportionality to 12.11 1E+12 won.
"In telecommunications, we achieved achievement broad quarterly income and operative profits as a termination of brawny income of Galaxy S as substantially as Galaxy Tab in matured markets and solidified income of accumulation mart smartphones as substantially as full-touch phones in emerging markets," Yi said.
After a andante move in smartphones, Samsung is making a field push to challenge Apple Inc.'s iPhone with it Galaxy brand. Samsung has sold 10 meg Galaxy S smartphones since the flagship help was introduced in June terminal year.
Samsung said weekday it aims to sell 60 meg smartphones this year, twice the 2010 total, and plans to introduce what it titled a progeny to the Galaxy S during the prototypal half of the year.
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